IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

The Impact of Monetary Policy on Economic Growth in Cambodia

Listed author(s):
  • Mardy Lut

    (Pannasastra University of Cambodia)

  • Pahlaj Moolio

Although monetary policy in Cambodia through its policy instruments is likely to have played an active role in contributing to GDP growth, which averaged about 8% annually during the study period; however, as the economy is affected by De Facto dollarization and most of the transactions are made in cash based, especially in US dollars, so this motivates us to conduct this study to examine whether monetary policy has any impact on the economic growth in Cambodia. Literature review revealed that an increase in money supply boosts economic growth, while decrease in interest rate also contributes in economic growth. Using quarterly time series data from 2000 to 2012, this study applied multiple regression model to examine the impact of money supply and interest rate on GDP growth in Cambodia. The results show that money supply has a positive impact on GDP growth, but the strength of impact is relatively weak, while change in interest rate over the study period did not affect economic growth, meaning that there is no significant effect of interest rate on GDP growth. Thus, the study suggests that implementing one currency policy should be considered so that monetary policy can be used more effectively to control economics activities. Also, because only interest rate for foreign loan is used in the study, it is recommended that in the future, a further study about money supply and GDP should include exchange rate in an analysis.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://timesresearchconsultant.com/journal/upload_file_trc/uploads/2680_File_40-63%20The%20Impact%20of%20Monetary%20Policy%20on%20Economic%20Growth%20in%20Cambodia.pdf
Download Restriction: no

Article provided by Times Research Consultant (TRC) in its journal Journal of Management for Global Sustainable Development.

Volume (Year): 1 (2015)
Issue (Month): 1 ()
Pages: 40-63

as
in new window

Handle: RePEc:trc:journl:v:1:y:2015:i:1:p:40-63
Contact details of provider:
More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:trc:journl:v:1:y:2015:i:1:p:40-63. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dr. Gobind M. Herani)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.